$70M Weed Cryptocurrency Offering Was Illegal, Suit Says

By Jack Newsham (January 31, 2018, 4:04 PM EST) -- ParagonCoin Inc., a cryptocurrency startup focused on the marijuana industry, was accused in a California federal lawsuit Tuesday of violating securities laws with a $70 million initial coin offering that wasn't registered with authorities.

Astley Davy, who is seeking to represent a class of investors in the company's ICO, claims he purchased ParagonCoin tokens, called PRG, last September and October. But the offering wasn't registered with the U.S. Securities and Exchange Commission, the suit says, meaning the company and its executives Jessica VerSteeg and Egor Lavrov need to cough up the proceeds.

The suit doesn't accuse the defendants of fraud, but it...

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